Fake e-way bills, shell firms and alleged collusion rock tax administration; STF widens probe

Lucknow | Special Correspondent: Arun Sharma

In a major blow to tax evasion networks, the Uttar Pradesh Special Task Force (STF) has uncovered a ₹100-crore Goods and Services Tax (GST) evasion scam, naming a central GST inspector posted in New Delhi as an accused in what investigators describe as a deeply entrenched nexus of shell companies, fake e-way bills and forged invoices.


According to STF officials, GST Inspector Mohit Agrawal, currently absconding, allegedly played an active role in facilitating the racket by providing departmental protection and manipulating official records in exchange for bribes. Special teams have been deployed to trace and arrest him.


The case, registered at Kavi Nagar police station in Ghaziabad, centres on large-scale GST fraud through bogus firms floated solely to generate fake e-way bills and illegally claim input tax credit (ITC). Investigators say the scam caused an estimated loss of nearly ₹100 crore to the government exchequer.


So far, the STF has arrested four accused, including New Delhi-based scrap dealer Hardeep Singh alias Prince, along with Jitendra Jha, Punit Agrawal and Shivam Singh. Officials allege the syndicate created multiple shell companies to route fraudulent transactions and siphon off tax credits.


During the probe, evidence emerged suggesting that Inspector Agrawal allegedly accepted bribes to restore suspended firms, shield fake entities from scrutiny and tamper with records. One such firm, Adon Automobile, reportedly suspended earlier, was reinstated following his intervention. Investigators claim a bribe of ₹40,000 was paid for the favour.


The STF has also pointed to the involvement of a Haryana-based facilitator, who allegedly supplied fake firms for a lump-sum commission. WhatsApp chats recovered from an accused’s phone reportedly detail discussions on payments and record manipulation, strengthening the case against the network.


Officials indicated that the investigation is being expanded across Uttar Pradesh and neighbouring states, with more arrests likely as the net widens. The revelations have raised serious questions about systemic vulnerabilities and alleged collusion within the tax administration, prompting calls for stricter oversight and institutional accountability.


The case is being viewed as one of the most significant GST fraud exposures in recent times, underscoring the growing sophistication of financial crimes and the urgent need to strengthen enforcement mechanisms at both central and state levels.